Trends in Productivity Improvement in Construction Projects in Palestine

Revista Ingeniería de Construcción RIC
Vol 28 Nº2 2013 http://www.ricuc.cl

....................................................................................................................................................................................................................................................................................
Trends in productivity improvement in construction projects in

Palestine
Tendencias para optimizar la productividad en los proyectos de
construcción en Palestina
Adnan Enshassi1*, Bernd Kochendoerfer**, Karem Abed***
* Department of Civil Engineering, IUG, PALESTINE

** Fachgebiet Bauwirtschaft und Baubetrieb, Technische Universitaet Berlin, GERMANY
*** PECDAR, Gaza, PALESTINE
Fecha de Recepción:19/04/2013
Fecha de Aceptación:20/06/2013
PAG 173 -206
Abstract
Labor productivity in construction industry is gaining increasing attention as the industry faces multiple problems related to its workforce. Most of construction projects
in the Gaza Strip were suffering from declining productivity and thus causing projects delay, and cost overruns. The aim of this paper is to determine contractors’
perceptions towards the identified productivity improvement factors according to their relative importance in construction projects in the Gaza Strip. A comparison was
made with other developed and developing countries. Eighty-three productivity improvement factors were considered in the questionnaire and categorized into eleven
groups. A survey was conducted among construction firms in the Gaza Strip to rank these factors by their degree of influence on productivity of construction projects.
Ninety questionnaires were randomly distributed among local contractors whereas seventy three valid questionnaires were collected from respondents. The findings
of this study indicated that the most significant productivity improvement factors are: closures and economical difficulties, political situation, delivery on time, field
management, and material availability. External circumstances group was found the most important group which affects productivity improvement in the Gaza Strip as
the unstable political atmosphere affects badly the construction industry. A proactive relationship has to be established among all parties in order to allocate effective
productivity improvement plans. It is hoped that, by identifying and ranking the major problems affecting construction productivity should help contractors to facilitate
proper solutions as well as determining potentials for productivity improvement. The industry needs to collaborate more with universities and research institutions in
order to plan an effective strategy through which construction industry could be enhanced. Training can increase productivity, morale, reduce the load on supervisors,
improve safety, and increase organizational stability and flexibility.
Keywords: Construction, contractors, improvement, productivity
Resumen
La productividad laboral en la industria de la construcción está ganando una creciente atención en cuanto la industria enfrenta múltiples problemas relacionados
con su fuerza laboral. La mayoría de los proyectos de construcción en la Franja de Gaza sufre una disminución de productividad provocando demoras y exceso de
costos. El objetivo de este artículo es determinar las perspectivas de los contratistas hacia factores de optimización de la productividad ya identificados, de acuerdo a
su importancia relativa en proyectos de construcción en la Franja de Gaza. Se realizó una comparación con otros países desarrollados y en vías de desarrollo. Ochenta
y tres factores de optimización de la productividad fueron considerados por el cuestionario y categorizados en once grupos. Se realizó una encuesta entre empresas
constructoras de la Franja de Gaza para clasificar los factores, de acuerdo a su grado de influencia sobre la productividad de los proyectos de construcción. Noventa
cuestionarios fueron distribuidos al azar entre contratistas locales, mientras que setenta y tres cuestionarios validos fueron contestados localmente. Los descubrimientos
de este estudio indicaron que los factores de optimización de la productividad más relevantes son: el cierre, dificultades económicas, situación política, tiempos de
entrega, administración en obra y disponibilidad de material. El grupo de circunstancias externas que más afecta la optimización de productividad en la Franja de Gaza
es la atmósfera de inestabilidad política que daña la industria de la construcción. Se debe establecer una relación proactiva entre las partes para instaurar planes de
optimización a la productividad. Se espera que al identificar y clasificar los grandes problemas que afectan la productividad en la construcción, se facilitarán soluciones
adecuadas a los contratistas, y a su vez se determinarían los potenciales factores para la optimización de la productividad. La industria requiere colaborar más con
las universidades e instituciones de investigación para planificar una estrategia eficiente, a través de la cual se pudiera optimizar la industria de la construcción. El
entrenamiento puede aumentar la productividad, la motivación, reducir la carga a los supervisores, optimizar la seguridad e incrementar la estabilidad y flexibilidad
organizacional.
Palabras Clave: Construcción, contratistas, optimización, productividad
1. Introduction
The flow of monetary aids to the Gaza Strip through
the World Bank, EUC, USAID and others, contributed to create an
ideal climate to improve many sectors like construction, education
and investment. The growth in different sectors in the Palestinian
society required the support of effective construction industry.
1
Autor de correspondencia / Corresponding author:
E-mail: aenshassi@gmail.com
Revista Ingeniería de Construcción Vol. 28 Nº2, Agosto de 2013 www.ricuc.cl 173

Adnan Enshassi, Bernd Kochendoerfer, Karem Abed
Roads, infrastructure projects (sewage and water), governmental

buildings and Gaza airport have been constructed to facilitate
the life for the Palestinian citizens. Until 2000, contractors
enjoyed very good business and achieved satisfactory profits.
However since then, uptight tense political climate affected
in winding down of many plans for development which
in turn created what was perceived to be a recession in the
construction industry in the Gaza Strip. The contractors’
profits margins as well as the demand for construction have
been in decline. This situation affected the local contractors
to become more competitive in order to survive and remain
in the market. Construction market in the Gaza Strip forced
many contractors to look for other alternatives or to improve
their abilities by using proper managerial tools to stay within
the circle of competitiveness. Among these tools, controlling
construction productivity became an effective way to improve
the contractor’s abilities and to facilitate the performance of
their projects.
The Palestinian Authority (PA) is highly dependent

on two sources of income. The first is annual aid package
from western donors of about $1 billion per year. In year
2005, donors gave the PA $1.3 billion, for humanitarian and
emergency ($500m/38%), for development, ($450m/35%),
and for budgetary assistance ($350m/27%), much of it now
suspended. The second is a monthly transfer by Israel of $55
million in customs and tax revenues that it collects for the PA,
a source of revenue that is absolutely critical to the Palestinian
budget and totally suspended. In fact, Israel is now withholding
close to half a billion dollars in Palestinian revenue that is
desperately needed in Gaza (Roy, 2006). Unemployment in
Gaza is close to 40% and is set to rise to 50% (Palestinian
Bureau of Statistics 2007). The private sector-that generates
53% of all jobs in Gaza has been devastated, businesses
have been bankrupted and 75,000 out of 110,000 workers
are now without a job. At present, 95% of Gaza’s industrial
operations are suspended because they cannot access inputs
for production nor can they export what they produce. The
construction industry is paralyzed with tens of thousands of
labors out of work (OCHA, 2007). The agriculture sector has
also been badly hit and nearly 40,000 workers who depend
on cash crops now have no income (World Bank, 2008).
Data compiled by Gisha (2007) showed that Gaza’s industry
is collapsing. Out of the 3,900 factories in Gaza producing
food, pharmaceuticals, construction materials, wood, paper,
craftwork, engineering materials, metals, plastics and rubber,
more than 2,900 factories have ceased to produce.
174 Revista Ingeniería de Construcción Vol. 28 Nº2, Agosto de 2013 www.ricuc.cl

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Productivity is one of the significant components

of every company’s success and competitiveness in the
construction market. A construction contractor stands to gain
or lose, depending on how well his company’s productivity
responds to competition. Construction companies may
gain advantage over their competitors by improving upon
productivity to build projects at lower costs; yet, most
contractors do not systematically and properly address this
strategic issue or evaluate its impact on the project’s profit
(Mojahed and Aghazadeh 2007). Productivity is a significant
issue in the construction industry in large areas of the
world. In Palestine like several other countries, productivity
in construction industry still suffers from lack of accurate
measurements and effective strategies to enhance construction
productivity. The low interest in productivity in the Gaza Strip
caused disruption in many projects as well as uncontrollable
construction process. Increased productivity can have a large
impact on the overall construction process and consequently
results in significant cost and time savings. Any opportunity to
achieve productivity improvements over the historical norm will
require better planning. The aim of this paper is to determine
contractors’ perceptions towards the identified productivity
improvement factors according to their relative importance
in construction projects in the Gaza Strip. This will assess
contractors to eliminate or minimise productivity problems,
hence improve productivity.
2. Literature review
Construction productivity improvement is a key issue
for businesses and nations to increase profitability, reduce costs,
create and sustain competitive advantage. To remain world-
class players in a highly competitive global market, construction
decision makers must promote individual productivity
strategies that match business needs (Flanagan et al., 2005;
Productivity Commission of the Australian Government, 2005).
Several researches studied the factors affecting construction
productivity in order to find the potentials for productivity
improvement. A survey of top contractors conducted by
Arditi and Mochtar (1996), in Indonesian indicated that
certain functions including procurement practices, cost
control, scheduling and management integration need much
improvement. The functions that were identified as needing
more improvement were prefabrication, new materials, value
engineering, specifications, labor availability, labor training, and
quality control, whereas those that were identified as needing
less improvement than in the previous surveys were field
inspection and labor contract agreements (Arditi and Mochtar
2000). Construction tasks are generally complex and hard to
quantify when assessing and measuring productivity (Janssen,
2008). In many countries the construction industry attracted
criticism for low productivity and poor quality (Eriksson and
Westerberg 2011).

Improving productivity is a management issue,

and the introduction of new techniques or technologies may
be a necessary but not a sufficient condition. In order to
improve productivity in construction it should be necessary
to improve methods, improve training programs, enhance
worker motivation, improve strategic management and
improve procurement management (Rojas and Aramvareekul,
2003). Thomas et al. (2003) stated that new management
thinking, like lean production, has suggested that better labor
performance can be achieved by improving the reliability
of flows. Lean thinking portrays reliable flows as the timely
availability of resources, materials, information, and equipment.
Site management fully accepts their responsibility for setting
out the key workplace conditions for improved productivity
and for maintaining an uninterrupted flow of work. Hence,
the quality and authority of site management, the quality of
their construction planning and their ability to administer the
plan were seen as important determinants of productivity and
site management seen as a key profession within the industry
(Williams, 2005). DeVilbissand Gilbert (2005) stated that
unresolved conflict is recognized as a significant source of
unproductive stress.
In Haskell’s view (2004), the potential for further

productivity enhancements falls into five categories: information
technology, project delivery, automation and prefabrication,
workforce development, and materials. Construction method
is a significant factor which has an impact on construction
productivity (Kim et al., 2005). Mojahed and Aghazadeh
(2007) mentioned that improvement in construction
productivity is not possible without identifying factors that
influence productivity. Previous studies regarding productivity
indicated that a broad range of factors affect productivity. These
factors may be divided into industry-level, company-level, and
project level. Some of the productivity factors at industry-level
include governmental interference, regulation burdens, local
unions, and politics. Some of the factors that are at project
level are labor-related and include motivation, experience, skill,
and training. Some of the factors that are at company level are
management-related and include planning and direction of
project. Adrian (2003) stated that leadership skills contribute
to productivity improvement. Kazaz and Ulubeyli (2007)
mentioned that improved productivity is also required; if all
production inputs are well-utilized, capital improvements and
enhanced productivity goes hand in hand.
Several scholars have identified a range number

potential factors which may led to an improvement in
productivity, They have categorized these factors into 9 groups
(Arditi and Mochtar 1995; Hanna et al., 2005; Thomas et al.,
2002; Thomas et al., 2003; Makulsawaudom and Emsley, 2001,

....................................................................................................................................................................................................................................................................................
Kazaza and Ulubeylib 2007, Thomas and Horman 2006,

Mojahed and Aghazadeh 2007, Rojas and Aramvareekul 2003,
Shash and AL-Amir 1997). Poor productivity is a concern
because of its effect on costs and competitiveness, the viability
of the work in hand and ultimately on the industry itself
(Enshassi et al., 2007, Williams, 2005). Labor can account for
up to a third of the total productive or non-productive time
on construction sites (Adrian, 2003). Its component in cost of
construction has even risen in recent years as the employers are
always met with demands for a higher base pay and increasing
fringed benefits. The accuracy of information on labor
productivity rates is therefore crucial for the determination of
the direct relationship between these rates and subjects such as
estimating, cost control, scheduling and resource management
(Herbsman and Elis, 1990). Productivity of labor is of particular
concern to construction operations because they are heavily
labor intensive (Productivity Commission of the Australian
government, 2005). Ruddock and Ruddock (2009) reassessed
productivity in the construction sector to reflect hidden
innovation and knowledge economy.
Rojas and Aramvareekul (2003) presented the results

of a survey instrument applied to determine the relative level
of relevance of construction labor productivity drivers and
opportunities. Management skills and manpower issues were
identified as the two areas with the greatest potential to affect
productivity according to survey respondents. A model for
automated control was developed and verified in the field by
Navon and Goldschmidt (2003) in order to demonstrate that
labor inputs can be automatically measured and controlled. The
concept behind this development is that indirect data- workers
location measured automatically at regular time intervals can be
controlled automatically and converted into labor inputs using
computerized algorithms. Lee et al. (2004) proposed relevant
indicators to measure labor factors, i.e., worker loyalty and
labor resource stability that affect the planned normal workflow.
Hanna et al. (2005) provided a comprehensive analysis of the
impact of extended duration overtime on construction labor
productivity. The results show a decrease in productivity as the
number of hours worked per week increase and/or as project
duration increases. Abdul Kadir et al. (2005) evaluated and
ranked the importance, frequency and severity of project delay
factors affect the construction labour productivity for Malaysian
residential projects.
Lbbs (2005) studied the impact of construction

changes on productivity. Project change is disruptive and
detrimental to labor productivity. If changes are necessary, they
should be recognized and incorporated as early as possible.
Moselhi et al. (2005) conducted a study to investigate the impact
of change orders on construction productivity and introduced
a new neural network model for quantifying this impact.

Factors contributing to the adverse effects of change orders

on labor productivity were identified and a new model is
expanded to account primarily for the timing of change
order, among other factors. Kazaz and Ulubeyli (2007) have
studied the factors affecting productivity among members
of the construction workforce in Turkey. The results show
that monetary factors remain pre-eminent in influencing
productivity, but that socio-psychological factors appear to
be of increasing importance in this developing economy. Tran
(2011) conducted a thorough study into labour productivity
in the New Zealand construction industry. He stated that
productivity growth is strongly correlated to economic growth
and increase welfare. Productivity growth in the construction
sector may have significant effect on the affordability of housing
in the country.
3. Methodology
Research population
The population in this research included contracting
firms registered in the Palestinian Contractors Union (P.C.U)
records. Contractors are classified, according to the Palestinian
Contractors Union, into five major categories depending on
their size, financial strength, experience, equipment owned by
the company, and qualifications of staff. First Class describes
largest contractors whereas fifth class designates the smallest.
The fifth class contractors were excluded due to the small
size of their companies which would not give convincing
response regarding construction productivity as a result of their
poor practical experience. The targeted population was the
contracting firms that have a valid registration in the PCU in
the following fields: building, infrastructure work and electro-
mechanics.
Sample size
Statistical formulas were used in order to calculate
the sample size for the contractors (Creative Research System,
2009).
(1)
Where
SS = Sample size
Z = Z value (e.g. 1.96 for 95% confidence level)
P = Degree of variance between the elements of population
percentage (0.50 used for sample size needed).
C = Confidence interval (margin of error) (e.g., 8%)
(2)

....................................................................................................................................................................................................................................................................................
Correction for finite population:
(3)
Where POP is the population = 139 (POP represents

the overall number of local contractors registered in the P.C.U)
(4)
The total number distributed to contractors was

90 questionnaires. The total number of valid returned
questionnaires was 73. The number of valid questionnaires was
73 although number of collected questionnaires was 80. Seven
questionnaires out of eighty were unqualified to be included in
the analysis process. These invalid questionnaires were either
uncompleted or filled using one scale.
Questionnaire design
An extensive literature has been reviewed in order
to extract the most significant productivity improvement
factors (Arditi and Mochtar 1995, Shash and AL-Amir 1997,
Makulsawaudom and Emsley 2001, Thomas et al., 2002,
Rojas and Aramvareekul 2003, Hanna et. al., 2005, Thomas
and Horman 2006, Mojahed and Aghazadeh 2007, Kazaza
and Ulubeylib 2007). A draft questionnaire has been built
using the factors extracted from literature review. A pilot test
was performed for preliminary questionnaire. Ten experts
were involved in this pilot test. They have at least 15 years
experinec in the construction industry. They were asked to
critically review the design and structure of the questionnaire.
Their valuable comments were used to revise the research
questionnaire. Additional factors have been added to some
groups; namely are labor, machinery, material, IT applications
and contracting groups. Additional two main groups related
to company characteristics and external circumstances have
been added to the questionnaire. Also some factors have been
modified in order to be consistent with the local conditions and
circumstances in the Gaza Strip.
The final version of the questionnaire included

83 factors which are believed to affect construction
productivity improvement. These factors are categorized into
eleven groups: contractor’s characteristics, labor, material,
management, regulations, contracting, machinery, engineering,
labor productivity improvement techniques, IT application in
construction and external circumstances. Three-point Likert
scale which in commonly used has been adopted in this
research. This scale illustrates three options as follows:
• If respondents strongly agree, response is given (3)
points.
• If respondents somewhat agree, response is given (2)
points.
• If respondents disagree, response is given (1) points

The respondents were asked to rate their level

of agreement regarding the identified productivity factors.
The questionnaires were sent to top management as well as
key persons to assess the most important factors affecting
construction productivity in their organizations.
Data measurement
In this paper, ordinal scales were used. Ordinal scale
is a ranking or a rating data that normally uses integers in
ascending or descending order. The numbers assigned to the
level of effect [1 (low), 2 (medium), 3 (high)] do not indicate
that the interval between scales are equal, nor do they indicate
absolute quantities. The relative importance index methods
(RII) are used to determine the ranks of all performance factors.
The relative importance index is computed as (Odeh and
Battaineh 2002, Wanous et al 2003):
(5)
Where
i = response category index = 1, 2, and 3 for low, medium, and
high, respectively.
Wi = the weight assigned to the ith response = 1, 2, and 3,
respectively.
Xi = frequency of the ith response given as percentage of the
total responses for each item.
4. Results
Characteristics of respondents
Type of entity for the participating contractors
The survey indicated (Figure 1), that about half
(50.7%) of the entire participating contractors are corporation
contractors whereas 24.7% are family-owned and 21.9% are
partnership. The previous results show that the local contractors
in the Gaza Strip are mostly of the corporation type.
60.0% 37
Percentage of respondents
Porcentaje de encuestados
50.0%
40.0%
18 16
30.0%
20.0%
10.0% 2
0.0%
Family ow ned Partnership Corporation Joint venture
Empresas familiares Sociedades Corporaciones
Percent 24.70% 21.90% 50.70% 2.70%
Porcentaje
Type of entity /Tipo de entidad
Figure 1. Type of entity for local contractors

Figura 1. Tipo de entidades dentro de los contratistas participantes

....................................................................................................................................................................................................................................................................................
Type of participating contractors

As shown in Table 1 three participants have answered
this question. The majority of the participating contractors
(54.3%) were classified as building contractors in different
classes while (45.8%) of the respondents were classified as
infra structure and water works contractors.
Table 1. Type of local contractors

Tabla 1. Tipo de contratistas locales
Percent/
Type of contractor/ Tipo de contratista N
Porcentaje
Building/ Edificaciones 38 54.3%
Industrial works/ Trabajos Industriales 2 2.9%
Infrastructure/ Infraestructura 17 24.3%
Water works/ Trabajos para Aguas 13 18.6%
Total 70 100%
The previous result is consistent with the type of

the projects implemented in the Gaza Strip during the last
decade as the building projects including buildings, schools,
and universities. Only two industrial work contractors have
been registered from the participating contractors. This could
be attributed to the fact that the industrial works requires
specialized and qualified contractors in order to implement such
projects; also the volume of industrial works is inconsiderable
in an area like Gaza Strip compared with other works like
buildings and infra structure.
Respondents’ job title

It is noticed in Figure 2 that (41.1%) of respondents
occupied the Site/office engineer position whereas project
managers respondents came secondly with a percentage of
30.1%.
Otros 5,5% Gerente de la

empresa 23,3%
Others 5.5%
Com pany
m anager 23.3%
Ingeniero
de terreno/
oficina 41,1%
Site/Office Jefe de
Engineer 41.1% proyecto 30,1%
Project
m anager 30.1%
Puesto de trabajo de los encuestados

Respondents Job Titles
Figure 2. Job title of respondents

Figura 2. Puesto de trabajo de los encuestados

Years of experience for the respondents

The number of years in business for the respondents
ranges between one year and 27 years, the average is 10.32
years with standard deviation of 5.01 years. The value of
standard deviation is relatively low comparing to the average
value which indicating that there is low variability in the
collected data (years of respondents’ experience).
Figure 3 shows that (38.3%) of respondents have
years in business exceeds five years up to ten, on the other hand
the number of years in business of (28.8%) of the respondents
range from eleven (11) years to fifteen (15) years. That means
that the majority of the respondents had spent adequate time
in the field of construction in order to give relatively accurate
judgment on different factors affecting productivity in the local
construction industry.
28
40.0%
Percentage of respondents
Porcentaje de encuestados
21
30.0%
14
20.0% 10
10.0%
0.0%
6-10 11-15 16 Years
1-5 Years
Years Years and over
Percent 19.20% 38.30% 28.80% 13.70%
Años en la actividad de los encuestados
Years in business for respondents
Figure 3. Years in business for respondents

Figura 3. Años en la actividad de los encuestados
Average annual business volume for the respondents

The annual business volume of the respondents
ranges between $0.1 million dollars and $10 million dollars, the
average is $1.4 with standard deviation $1.96 million dollars.
The value of standard deviation is relatively high comparing to
the average annual business volume which indicating that there
is high variability in the collected data (annual business volume).
Table 2 shows that the respondents have been distributed to
three groups. (29.6%) of the responding contractors have
registered that they have annual business volume of less than
one million dollar whereas the second group of contractors
(33.8% of the overall contractors) revealed that their own
annual business volume ranges from one to two million dollars
and the last group of respondents (36.6% of all respondents)
have an annual business of two million dollar and above.

....................................................................................................................................................................................................................................................................................
Table 2. Average annual business for respondents

Tabla 2. Promedio anual de los encuestados en el negocio
Average annual business volume ($Million) Frequency Percent

Volumen del promedio anual en el negocio ($Millones) Frecuencia Porcentaje
Less than $1M/ Menos de $1M 21 29.6%
1-Less than $2M/ 1-Menos de $2M 24 33.8%
$2M and above/ $2M y más 26 36.6%
Total 71 100.0%
Years in business for the contractors

The number of years in business for contracting
companies ranges between 3 years and 40 years, the average
is 12.34 years with standard deviation of 5.67 years. The value
of standard deviation is accepted which mean low variability in
the data of years of business. Figure 4.4 shows that the majority
of respondents (around 70% of overall respondents) have a
period of extended experience that ranges from ten to twenty
years. A round 10% of overall respondents) have more than
twenty years experience in construction industry. Around 20%
of the responding contractors revealed that they have less than
ten years of experience in construction sector.
80.0% 50
Percentage of contractors
Porcentaje de contratistas
60.0%
40.0%
14
7
20.0%
0.0%
Less than 10 10 - Less than 20 20 Years and
Years Years above
Percent 19.70% 70.40% 9.90%

Años en la actividad de los encuestados
Years in business for contractors
Figure 4. Years in business for the contractors

Figura 4. Años en la actividad de los encuestados
Total sales of respondents

Table 3 that (27.4%) of contractors responded
that total sales of their companies since establishing in
construction field up to date range from six to ten millions
dollar whereas 26% of the contractors revealed that they
have total sales ranging from ten to twenty millions dollar.

For the large companies, only 15.1% of the respondents

registered that their total sales were higher than twenty
millions, on the other hand for the small size contractors,
11% of the respondents mentioned that their own total sales
didn’t reach one million dollars whereas 6.8% of contractors
responded that their total sales were bracketed between one
to three millions and 13.7% of respondents mentioned the
range between three to six millions for their total sales.
Table 3. Total sales of respondents

Tabla 3. Ventas totales de los encuestados
Annual Sales ( million dollars )/ Ventas Anuales (millones de dólares) Frequency/ Frecuencia Percent/ Porcentaje
Under one millions/ Bajo un millón 8 11.0%
Under 3 millions/ Bajo 3 millones 5 6.8%
Over 20 millions/ Sobre 20 millones 11 15.1%
Total 73 100.0%
Considering the fact that a contractor whose total

sales are less than six millions dollar is small size company,
contractor whose total sales range between six to ten millions
is medium-size contractor and contractor whose total sales
exceeds ten millions is big size contractor, then as a result 31%
of the contractors could be considered as small size company,
27.4% of the respondents could be classified as medium-size
contracting companies and the remaining percentage around
40% could be big size companies.
Geographic location of implemented projects

Table 4 shows that the majority of projects implemented
by the contractors are located in the Gaza governorate. This
result seems to be normal as a considerable number of vital
projects were implemented in the Gaza governorate due to its
importance and high population.
Table 4. Geographic location of projects

Tabla 4. Ubicación geográfica de los proyectos
Geographic Location of Projects

Frequency/ Frecuencia Percent/ Porcentaje
Ubicación Geográfica de los Proyectos
Northern Area Governorate/ Gobernación Área Norte 14 19.4%
Gaza Governorate/ Gobernación de Gaza 54 75%
Middle Area Governorate/ Gobernación Área Intermedia 3 4.2%
Khanyounis Governorate/ Gobernación de Khanyounis 1 1.4%
Total 72 100.0%

....................................................................................................................................................................................................................................................................................
Permanent employees of contractors

Figure 5 show that more than 75% of the respondents
have a number of fixed-term employees which is less than 20
persons. That means that majority of local contracting firms
have this figure of permanent employees. These employees
often include engineers, accountants, administrative employees
and few of fixed term skilled labors. Actually, having less than
20 permanent employees for 75% of the overall respondents is
relatively low. The reason behind such result might be attributed
to the nature of construction sector in the Gaza Strip. The local
construction market is unstable due to economic as well as
political circumstances; as a result the contractors used to hire
engineers, skilled labor or sub-contractors during implementing
their projects and release those employees at the end of
projects. Such situation may affect badly the development of
contractors due to the multiple changes and unstable working
staff in the contracting companies.
27 28
40.0%
Porcentaje de contratistas
Percentage of contractors
30.0%
12
20.0%
6
10.0%
0.0%
1 to 10 11 to 20 21 to 40 Over 40
Percent 37.00% 38.40% 16.40% 8.20%
Número de empleados con contrato permanente
Number of permenent employees
Figure 5. Permanent employees of respondents

Figura 5. Encuestados y sus empleados con contrato permanente
Also it is shown in Figure 5 that only twelve

contractors (16.4% of all respondents) have a number of
permanent employees ranging from 21 persons up to 40 ones
whereas 8.2% of sharing contractors revealed that they have
more than 40 fixed term employees. Indeed, these contractors
are classified as large companies and may have other branches
except main office or have other additional activities related to
construction sector like asphalt plant, tiles or manholes factory
or concrete plant.
Construction machinery of respondents

Table 5 shows the value of construction machinery
that the company has for implementing construction projects.
The more the company has dollar value of machinery, the
bigger size the contractor could be considered. Around (42%)
of all respondents have provided that they have only less than
200.000 dollar value of construction machinery while 41% of
contractors have shown that they have construction machinery
value of more than 200.000 $ and less than half million dollars.

Only two contractors revealed that they have machinery value

of more than one million $. These contractors are the biggest
among all the contractors and used to execute different types
of projects either in the Gaza Strip or outside.
Table 5. Value of construction machinery of respondents

Tabla 5. Valor de la maquinaria de construcción de los encuestados
Dollar Value of Construction Machinery

Valor en Dólares de la Maquinaria de Construcción
Under $200.000/ Bajo $200.000 31 42.5%
Under $500.000/ Bajo $500.000 30 41.1%
Around 1 million/ Alrededor de 1 millón 10 13.6%
Under 3 million/ Bajo 3 millones 1 1.4%
Over 5 million/ Sobre 5 millones 1 1.4%
Total 73 100.0%
Also Table 6 shows percentage of construction

equipments rented by contractors during implementation
the course of work. It is noticed in Table 6 that the majority
of respondents (around 41% of all respondents) used to rent
only less than 25% of machinery required to execute their
works with respect to the type of work implemented by these
contractors. That means those contractors have the necessary
machine required to implement construction work with respect
to the type of work implemented by contractors. Around 23%
of contractors provided that they have sufficient equipment
to implement their projects separately with no need to hire
a single machine. Mostly these contractors are large scale
contractors, so it is normally for them to own both of heavy
type machinery like shovels, trucks, excavators and small
equipment like vibrators, plate compactors and other tools.
Around 7% of respondents used to rent more than 50% of
equipments required to their works up to a percentage reach to
75%. These respondents are usually small size contractors and
mostly may have only small equipment and tools.
Table 6. Construction equipment rented by respondents

Tabla 6. Equipo de construcción arrendado por los encuestados
Percentage of Construction Equipment rented/ Porcentaje de

Equipo de Construcción Arrendado
None/ Ninguno 17 23.3%
Under 25%/ Bajo 25% 30 41.1%
Under 50%/ Bajo 50% 21 28.8%
Under 75%/ Bajo 75% 5 6.8%
Total 73 100.0%

....................................................................................................................................................................................................................................................................................
Productivity improvement factors

83 productivity improvement factors have been studied in
this study which is distributed into 11 groups. Ranking of
productivity improvement factors have been made twice
throughout this research; ranking within each group; and the
other one was covering the overall factors.
Company characteristics group

Company characteristics group include seven productivity
improvement factors (Table 7). The most important factors will
be discussed.
Table 7. RII and Ranks for contractor characteristics factors (group 1)

Tabla 7. IIR y Calificación para los factores características del contratista (grupo1)
Rank among all

Contractor Characteristics Factors/ Factores Rank within group/ Calificación groups/ Calificación
RII/ IIR
Características del Contratista dentro del grupo dentro de todos los
grupos
Financial Strength/ Solvencia financiera 0.913 1 8
Previous Experience/ Experiencia previa 0.881 2 11
Company Policy/ Política de la empresa 0.877 3 12
Human Recourses/ Recursos humanos 0.854 4 18
Company assets/ Activos de la empresa 0.735 5 48
Company Size/ Tamaño de la empresa 0.722 6 53
Management Style/ Estilo de administración 0.703 7 58
The “Financial Strength” factor occupied the first

rank with RII value of 0.913 whereas it was ranked in the 8th
position among overall the 83 factors (Table 8). Such results
ensure increased importance of “Financial Strength” factor
in enhancing construction productivity among the overall
factors. Indeed, one of the most important drivers in achieving
success in any business is the availability of suitable capital.
The availability of financial strength together with qualified
human resources should definitely bring success, profitability
and rapid improvement in any construction company. The case
of construction projects is highly dependent on the contractor’s
financial strength either in procuring the necessary insurances,
bonds or in delivering material and labor required to build the
projects.
The “Contractor’s Previous Experience” factor was

ranked by respondents secondly with relative index value of
0.881 and was ranked in the 11th position among the overall
eighty three factors. The high rank of “Contractor’s Previous
Experience” factor either at the level of its group or among the
83 factors, reflects high significance of such factor in improving
construction productivity. The more experienced company, the
higher productive contractors among others. On the other hand,
the poor experienced contractor will face many difficulties in
judging the matters and approving right procedures to execute
the work and that will reflect bad implications on its productivity
rates and projects progress. Mojahed and Aghazadeh (2007)
ranked “Skills and experience” factor firstly among many other
factors while conducting survey study among the construction
contractors in the deep south USA.

With a relative index of 0.877, “Company Policy” factor was

ranked as third major productivity improvement factor whereas
was ranked in the 12th position among the overall eighty three
factors. Such results reflect high significance of “Company
Policy” factor in improving construction productivity. Company
policy include many issues such as setting short and long terms
goals with strategies and action plans to achieve them, also
machinery of selecting projects, how to select personnel,
distribution of work and promotion procedures. The previous
components of company policy can affect heavily the projects
productivity. “Human Resources” factor came at the fourth
rank in the company characteristics group with relative index
of 0.854 and was ranked in the 18th position among the overall
eighty three factors. Construction industry is a labor intensive
industry so it became important to concentrate on the matter
of human in the construction industry.
Labor group
Labor group includes fourteen productivity
improvement factors. Table 8 illustrates the respondents’
opinions about the productivity improvement factors related to
labor issues.
Table 9. RII and Ranks for factors related to labor (group 2)

Tabla 9. IIR y Clasificaciones para los factores relacionados con el grupo mano de obra (grupo 2)
Rank among all groups/

Rank within group/
Labor Factors/ Factores de mano de obra RII/ IIR Calificación entre todos los
Calificación dentro del grupo
grupos
Crew Arrangements/ Distribución de cuadrillas 0.886 1 10
Incentives/ Incentivos 0.845 2 21
Work Conditions/ Condiciones de Trabajo 0.817 3 28
Loyalty/ Lealtad 0.813 4 29
Labor Availability/ Disponibilidad de mano de obra 0.808 5 32
Safety/ Seguridad 0.796 6 34
Quality control/ Control de calidad 0.758 7 42
Working Hours/ Horas trabajadas 0.755 8 43
Relations with Forman/ Relación con el capataz 0.726 9 51
Labor Relations/ Relaciones laborales 0.708 10 56
Contract Agreement/ Acuerdo de contrato 0.685 11 64
Local Regulations/ Normativa local 0.676 12 66
Training/ Entrenamiento 0.557 13 79
Project Location/ Ubicación del proyecto 0.53 14 81
“Crew Arrangement“ factor was ranked first with RII value

of 0.886 among the labor group factors and was ranked in the 10th
position among the eighty three factors. The high rank of “Crew
Arrangement” factor among either labor group factors or the overall
83 factor, prove increased importance of such factor in enhancing
construction productivity. Indeed, increased productivity can be
obtained through the cooperation and collaboration of workers.

....................................................................................................................................................................................................................................................................................
“Crew arrangement” is considered a vital proactive

management tool through which construction productivity
could be optimized. Ghio (2000) highlighted the high
significance of “Crew Arrangement” factor in enhancing
construction productivity while describes the work conducted
to improve productivity during the construction of a shopping
centre in South America.
“Incentives” factor was ranked second with a
value of RII equal to (0.845) and was ranked 21st among all
other productivity improvement factors. The use of special
motivational programs through financial incentives is common
on multiple international construction industries and such
programs have been found to be useful and effective. Such
programs are considered to be effective in raising productivity,
increasing the satisfaction of workers, improving construction
quality, shortening project time, and lowering overall
production costs. Despite the overall benefits of incentive
systems, many construction employers in the Gaza Strip do not
apply such programs in their administration, and they do not
always provide an attractive incentive either to the labor or to
the other employee. Similar result was obtained by Kazaz and
Ulubeyli (2007) while discussing both of economic and socio-
psychological factors affecting labor productivity.
With a relative index value of 0.817 “Work Conditions”

factor was ranked third whereas was ranked 28th among the
overall 83 factors. Working conditions in a construction site
could be very difficult from those found at another industry,
and this can affect the worker’s morale and productivity. Such
problems as congestion, changes, site access difficulties, or
weather conditions may have an influence on construction
productivity. The result obtained in this regard comes consistent
with result stated by Rojas and Aramvareekul (2003). Applying
efforts and practical solutions in order to minimize the bad
effects of such conditions on construction productivity should
be considered as a major priority. “Worker Loyalty” factor was
ranked fourth among the labor group factors with a relative
index value of 0.813 and was ranked 29th among the overall
factors. The previous findings suggest that worker commitment
and loyalty enhance both labor productivity and financial
performance at the firm level thereby highlighting a hitherto
neglected channel for improved firm performance. The “Labor
Availability” factor was ranked in the fifth position among the
factors of labor group with a relative index value equal to 0.808
and was ranked 32nd among all the productivity improvement
factors.
With a relative index of 0.796 “Safety” factor

occupied the 6th position whereas was ranked 34th among
the overall 83 factors. Safety has always a priority at any
construction job site because the dangerous nature of
most construction works renders them liable to many
accidents. Occupational injuries can harm the reputation of
a company, decrease productivity, and result in huge costs.

Unsafe working conditions are always due to a lack of both

safety equipments and commitment by workers to safety
rules. A manager interviewed for the present study stated that
construction workers in Gaza Strip ‘never care’ about safety
regulations. Another manager expressed the view that local
workers are especially unlikely to take the required safety
measures, even if management insists that they do so which
in turn contribute to decrease the construction productivity in
multiple projects.
Material group
Material group includes nine productivity improvement factors.
Table 9 shows the respondents’ opinions about the productivity
improvement factors related to material.
Table 9. RII and Ranks for improvement factors related to materials (group 3)
Tabla 9. IIR y Clasificaciones para los factores relacionados con el grupo materiales (grupo 3)
Rank within group/ Rank among all groups/

Material Factors/ Factores Materiales RII/ IIR Calificación dentro del Calificación entre todos los
grupo grupos
Delivery on time/ Entrega a tiempo 0.949 1 3
Material Availability/ Disponibilidad del material 0.94 2 6
Material Cost/ Costo del material 0.861 3 15
Procurement/ Abastecimiento 0.819 4 27
Accessories availability/ Disponibilidad de
0.741 5 46
accesorios
Storage/ Almacenaje 0.648 6 68
New Products/ Nuevos productos 0.606 7 73
Prefabrication/ Pre-fabricación 0.588 8 75
Transportation/ Transporte 0.563 9 78
“Delivery on Time“ factor was ranked first with a

relative index of 0.949 and the same factor was ranked third
among eighty three factors. The prompt procurement of
material could benefit project productivity by allowing work to
start and finish on schedule. Frequently in construction projects,
the start of a successor activity is dependent on the finish of a
predecessor activity. Thus, if the material procurement is not
timely, the wait time could cause subsequent activities in the
construction project to be delayed. The chain reaction would
eventually extend the project completion. In addition, the late
arrival of material with the corresponding wait time would
reduce the productivity of workers. Rojas and Aramvareekul
(2003) revealed that problems with material had been cited as
a major cause of productivity loss.
With a relative index of 0.940, the survey respondents

ranked "Material Availability" factor as the second factor
influencing productivity of construction projects, whereas the
same factor was ranked sixth among the eighty three factors.

....................................................................................................................................................................................................................................................................................
With effective pre-planning, the availability of materials should

be checked before workers are assigned to an area so workers
do not start any activity until the materials are available. Care in
this respect should improve worker motivation and productivity
and help promote a high level of accomplishment. "Material
Cost" factor was ranked third with a relative index of 0.861 and
was ranked 15th among the overall 83 improvement factors. In
fact, the material cost affects the availability of such materials
in the local market. It comes true that when a construction
material is nearly expensive, it becomes difficult to procure
such material rapidly by the contractor. Some agent suppliers
or manufacturers ask the interested contractor for a period of
time in order to arrange these materials. Others claim advanced
cash payment from the contractor prior to the delivery of such
material. As a result, it becomes urgent to place a scheduled
purchasing request in advanced, thus helping the contractor
to obtain the required material on time which in turn keep
construction site proceeding productively.
Management group
Management group includes fifteen productivity
improvement factors. Table 10 illustrates the results of the
productivity improvement factors related to management
issues.
Table 10. RII and Ranks for improvement factors related to management (group 4)
Tabla 10. IIR y Clasificaciones de los factores de optimización de productividad relacionados con la administración (grupo 4)
Management Factors RII Ranks within group Ranks among all groups
Factores de administración IIR Calificación dentro del grupo Calificación entre todos los grupos
Field Management/ Administración en obra 0.945 1 4

Office Management/ Administración en oficina 0.941 2 5
Planning/ Planificación 0.927 3 7
Scheduling/ Programación 0.889 4 9
Coordination within Company/ Coordinación
0.861 5 15
dentro de la empresa
Resource Allocation/ Asignación de recursos 0.858 6 17
Coordination with subcontractors/
0.852 7 20
Coordinación con sub-contratistas
Estimating/ Estimación 0.826 8 24
Cost Control/ Control de costos 0.81 9 31
Coordination with designer & client/
0.796 10 34
Coordinación con el diseñador & cliente
Safety Management/ Administración de
0.792 11 37
Seguridad
Quality Management/ Administración de
0.708 12 56
calidad
Coordination with Local Authorities/
0.69 13 61
Coordinación con Autoridades Locales
Marketing/ Marketing 0.676 14 65
Coordination with research organizations/
Coordinación con organizaciones de 0.62 15 72
investigación

With a relative index of 0.945, the survey respondents

ranked „Field Management“ factor as the first factor influencing
productivity of construction projects, whereas the same factor
was ranked fourth among the eighty three factors. Timely
inspection is of great importance to ensure effective operation,
material quality, and timely progress of the project schedule.
Subsequent activities on a construction schedule may not
start until the required inspection is completed on preceding
tasks. Waiting for instructions on how to perform the work
may slow down the construction progress. Mojahed and
Aghazadeh (2007) proved similar result while conducting
survey study among the construction contractors in the deep
south USA. „Office Management“ factor was ranked second
with a relative index of 0.941, while was ranked fifth among
the overall improvements factors. During the preparation phase
for a construction project, office management play a significant
role in planning, scheduling, resource allocation, and preparing
purchasing requests etc.
The survey respondents‘ ranked „Planning“ factor as

third one with a relative index of 0.927 whereas „Planning“
factor was ranked seventh among the 83 improvement
factors. Results indicated that „Planning“ contributed as a
primary factor sustaining productivity. Effective planning
of construction projects requires understanding of details,
construction methods, and resource requirements. The
relationship between construction activities and resources is
intrinsic to the construction process. Workforce productivity
is negatively affected when a project schedule changes as a
result of fragmentation of work activities, reassignment of
crew members, and -out of sequence- work. Proper planning
of all phases and components of work is necessary to ensure
productivity. Veiseth et al. (2003) highlighted the significant
role of planning in enhancing construction productivity. With
a relative index of 0.861 „Coordination within Company“
factor was ranked fifth whereas the same factor was ranked
15th among the 83 improvement factors. Poor communication
among different entities and individuals in a construction
project may negatively affect productivity of a job. Prompt
communication to make instructions and other information
available is critical for on time and proper performance of work.
Poor communication leads to a decline in work productivity
and very likely to defective products in the long run.
Regulation group
Regulation group include three factors. Table
11 illustrates the respondents results of the productivity
improvement factors related to regulation applications.

....................................................................................................................................................................................................................................................................................
Table 11. RII and Ranks for improvement factors related to regulation (group 5)
Tabla 11. IIR y Calificaciones para los factores de oprimizacion relacionados con las normativas (grupo 5)
Regulation Factors/ Factores Rank within group/ Rank among all groups/ Calificación entre
RII/ IIR
Normativas Calificación dentro del grupo todos los grupos
Health regulation/ Normativa

0.735 1 48
sanitaria
Environmental/ Medioambiental 0.662 2 67
Local Codes/ Códigos locales 0.644 3 69
Taxes/ Impuestos 0.58 4 76
With a relative index of 0.735, the respondents

ranked „Health Regulation“ factor as the first factor influencing
construction productivity, whereas the same factor was ranked
48th among the overall eighty three factors. Previous ranks put
the “Health Regulation” factor as a mediator one in improving
productivity. Construction projects can be complex and
involve many different trades and occupations. Frequently they
also involve high-risk activities. The work is more likely to be
done safely and to time if those doing the work have suitable
management arrangements in place. The Regulations are aimed
at protecting the health, safety and welfare of everyone who
carries out construction work. They also give protection to other
people who may be affected by the work. Such regulations
contribute to enhance satisfactory feeling for labor which in
turn reflects a considerable increase in their performance.
“Environmental Regulation” factor was ranked

second, and was ranked 67th among the overall 83 improvement
factors. Results reflect relatively minor role of “Environmental
Regulation” factor in improving construction productivity.
During construction most projects pose a significant risk to
the environment, which must be addressed by developers and
contractors. The risk to the environment is particularly high when
work is done near coastal areas, streams and creeks, or along a
river valley. When construction occurs near built-up areas, poor
practices may result in air and noise pollution which may cause
annoyance and affect the health of neighbouring communities.
Developers and contractors are required to implement sound
practices that minimize environmental impacts and eliminate
health risks and nuisance to residents near a construction site.
Machinery group
Machinery group include nine factors. It is shown in
Table 12 the respondents’ opinions against the productivity
improvement factors related to machinery and equipments.

Table 12. RII and Ranks for improvement factors related to machinery (group 6)
Tabla 12. IIR y Calificaciones para los factores de oprimizacion relacionados con la maquinaria (grupo 6)

Equipments Factors
RII/ IIR Calificación dentro Calificación entre todos los
Factor Equipamiento
del grupo grupos
Capacity/ Capacidad 0.854 1 18
Suitability for work/ Idoneidad para
0.84 2 22
el trabajo
Skilled Operator/ Operador
0.826 3 24
calificado
Safety/ Seguridad 0.826 3 24
Replacement/ Reemplazo 0.813 5 29
Maintainability/ Mantención 0.799 6 33
Cost Control/ Control de costos 0.795 7 36
Utilization/ Utilización 0.744 8 45
Simplicity/ Simplicidad 0.575 9 77
With a relative index of 0.854, the respondents

ranked “Machine Capacity” factor as the first factor influencing
construction productivity, whereas the same factor was ranked
18th among the overall eighty three factors. Results prove the
importance of “Machine Capacity” factor among the overall
83 productivity improvement factors in improving construction
productivity. Machine capacity describes capabilities of a
machine to execute a required volume of work in an hour or a
day. As stated by respondents such factor is classified of high
importance in achieving better productivity due to the fact that
majority of critical construction activities is highly dependent
on machine capacity. The more productive machine, the faster
project could be implemented.
“Suitability for Work” factor was ranked second

among the factors of machinery group whereas the same
factor was ranked 22nd among the overall factors in different
groups. It’s usually recommended by manufactures that each
construction machine is design to suit a specific type of work
and if the machine used for different types of work, results
of work productivity will not be within the accepted ranges,
due to the fact that the machine doesn’t work in optimal
work conditions. “Skilled Operator” factor was ranked third
whereas the same factor was ranked 24th among the eighty
three factors in different groups. In order to achieve required
productivity of a machine, two factors should be considered;
first is the machine itself and second is the operator. Machine
operator should have the required skills in order to deal with
such machine. Operator should be familiar with construction
machine; know its capabilities, satisfy manufactures guides and
conditions, keep maintenance programs for the machine.

....................................................................................................................................................................................................................................................................................
Contract conditions group

Contract conditions group include nine factors. Table
13 shows the respondents’ opinions against the productivity
improvement factors related to contract conditions.
Table 13. Improvement factors related to contract condition (group 7)

Tabla 13. Factores de optimización relacionados con las condiciones contractuales (grupo 7)
Rank within group Rank among all groups

Contracting Factors RII
Calificación dentro del Calificación entre todos los
Factores Contractuales IIR
grupo grupos
Payment arrangement/ Disposición de Pagos 0.872 1 13
Incentive/Disincentive Clauses/ Clausulas de
0.763 2 41
Incentivo/impedimento
Risk Distribution among Parties/ Distribución del
0.749 3 44
Riesgo entre las Partes
Selecting Subcontractors/ Selección de Sub-
0.731 4 50
contratistas
Selecting General Contractor/ Selección del
0.694 5 60
Contratista General
Insurance/ Seguros 0.689 6 62
Dispute Resolution Methods/ Métodos de Resolución
0.689 6 62
de Controversias
Selecting Designer/ Selección del Diseñador 0.621 8 70
Bonding/ Obligaciones 0.603 9 74
“Payments Arrangement” factor was ranked first

whereas the same factor was ranked 13th among the eighty three
factors in different groups. The amount of the advance payment
is commonly somewhere between 10% and 20% of contract
price. Where an advance payment is made equal to, say 10%
of the contract price, it is quite common for the contract to
state that the regular interim payments which are made as the
contract progresses will be reduced by 10% until the advance
payment has been recovered in full from those deductions.
In such a case it is only reasonable for the guarantee of the
advance payment to reduce by the same amount. The progress
payment, in which contractors are paid at intervals based on
work performed and incorporating agreed variation orders, is
designed to ensure smooth and rapid currency circulation and
to develop higher quality construction through closer relations
between the employer and the contractor. Prompt payment is
vital to the stability and efficiency of the construction industry.
Information technology group

Information technology group include eight
factors. Table 14 shows the respondents› opinions about the
applications of information technology in construction industry
and its effect on productivity.

Table 14. RII and Ranks for information technology (group 8)

Tabla 14. IIR y Calificaciones para las tecnologías de la información (grupo 8)
Rank among all

Information Technology Factors RII Rank within group groups
Factores Tecnología de la Información IIR Calificación dentro del grupo Calificación entre
todos los grupos
Scheduling and planning/ Programación y planificación 0.785 1 39
Word Log 0.74 2 47
Accounting/ Contabilidad 0.721 3 54
Design and Cad applications/ Diseño y aplicaciones Cad 0.721 4 54
Estimating and costing/ Estimaciones y costos 0.694 5 59
Risks analysis/ Análisis de riesgos 0.551 6 80
Internet and electronic mail/ Internet y correo electrónico 0.507 7 82
Fields communications/ Comunicaciones en terreno 0.47 8 83
With a relative index of 0.785, the „Scheduling

and Planning“ factor was ranked first among the factors of
information technology group, whereas the same factor was
ranked 39th among the overall eighty three factors. Previous
ranks ensure high importance of “Scheduling and Planning”
factor at the level of its group whereas reflect medial
importance when comparing with overall 83 factors. The
study revealed that majority of participants use computerized
scheduling and prepare time schedules for their projects using
different versions of the Microsoft Office Project program. A
precedence diagrams, network formats and different reports
might not be very common with small and medium sized firms.
Working with different alternatives, and hence achieving better
decisions-making, was the main advantage of using computers
in scheduling. “Word Log” factor was ranked second with a
relative index of 0.74 whereas the same factor was ranked
47th among the eighty three factors in different groups. This
proves high importance of “Word Log” factor at the level of
its group whereas reflect medial importance when comparing
with overall 83 factors. It’s predictable that the use of word
processing applications is considered of high significance
comparing with other computer functions, as most of the
contractors report purchasing the computers mainly for using
word log.
With a relative index of 0.721, the “Accounting” factor

was ranked third, whereas the same factor was ranked 54th
among the overall factors. Usage of computerized accounting
functions in construction firms became very common when
compared with other functions that the computer systems
may be used for. In the field of accounting the most often use
software programs are locally designed to meet the necessary
requirements of the contractors business like accounts
receivable, accounts payable, accounts of taxes, salaries sheet
and producing balance sheets and income statements.

....................................................................................................................................................................................................................................................................................
The use of accounting software contributed in keeping accurate

records that could be used as basic information in similar
future projects. Previous result is similar to result obtained by
Shash and AL-Amir (1996) while highlighting IT applications in
construction firms in Saudi Arabia.
Engineering group
Engineering group include three factors. Table 15
shows the respondents’ opinions against the productivity
improvement factors included in engineering group
Table 15. RII and Ranks for engineering group (group 9)

Tabla 15. IIR y Calificaciones para el grupo ingeniería (grupo 9)

Engineering Factors/ Factores Ingeniería RII/ IIR Calificación dentro Calificación entre
del grupo todos los grupos
Specifications/ Especificaciones 0.79 1 38
Value Engineering/ Ingeniería de Valor 0.785 2 39
Design Standards/ Estándares de Diseño 0.726 3 51
With a relative index of 0.790, the „Specification“

factor was ranked first, whereas the same factor was ranked
38th among the overall eighty three factors. Results ensure high
significance of “Specification” factor at the level of its group
whereas reflect medial importance when ranking among 83
factors. Drawings and specification alteration during execution
could take place in many projects implemented in the Gaza
Strip. Changes of specifications and drawings require additional
time for adjustments of resources and manpower in order to deal
with such changes. Labor morale is also affected by extensive
numbers of changes. This result is supported by Thomas (1999),
who stated there is a 30 % loss of efficiency when work changes
are being performed. Other researchers indicated also that
poor drawings were considered to be another cause for low
productivity (Makulsawatudom and Emsley, 2001). A delay
may be caused in the construction process when a drawing
is incomplete or not available. Incomplete drawings cause
waiting time by requiring clarifications and writing requests for
information. Generally, the quality of drawings is poor when
insufficient time is spent before the bidding process to develop
the design. This happens when the designer is not adequately
paid or allowed time to complete the design because the owner
rushes the bidding process.
“Value Engineering” factor was ranked second with

a relative index of 0.785 whereas the same factor was ranked
39 th among the eighty three factors in different groups.

Previous ranks ensure high significance of “Value Engineering”

factor at the level of its group whereas reflect medial importance
in improving productivity when comparing with overall 83
factors. Value engineering is a technique for reducing cost
and improving productivity. Value engineering is a systematic
functional analysis leading to actions or recommendations to
improve the value of systems, equipment, facilities, services,
and supplies. Its objectives are to improve quality and to
reduce cost.
Labor productivity improvement techniques group

This group includes three factors. Table 16 shows the
respondents’ ranks against the labor productivity improvement
techniques.
Table 16. RII and Ranks for labor productivity improvement techniques (group 10)
Tabla 16. IIR y Calificaciones para técnicas de optimización de productividad laboral (grupo 10)
Rank within group/ Rank among all

Labor Productivity Improvement Techniques/ Técnicas de
RII/ IIR Calificación dentro groups/ Calificación
Optimización de Productividad Laboral
del grupo entre todos los grupos
Goal Setting/ Establecer Objetivos 0.863 1 14
Time Study/ Estudio de Tiempo 0.836 2 23
Quality Circles/ Círculos de Calidad 0.621 3 70
With a relative index of 0.863, the respondents ranked

„Goal Setting“ factor was as the first factor affecting construction
productivity, whereas the same factor was ranked 14th among
the overall eighty three factors. Results prove high importance
of “Goal Setting” factor in enhancing construction productivity.
A successful program begins with a carefully established goal.
Goals should be set at a high but attainable level because low
ones lead to low performance. In the construction industry, the
best way to set goals is for management to agree on attainable
targets, based on the best historical performance for both
quality and productivity. “Quality Circles” factor was ranked
third with a relative index of 0.621 whereas the factor was
ranked 70th among the overall factors in different groups. A
similar factor named as “Sharing problems and their results”
was investigated by Kazaz and Ulubeyli (2007) in Turkey.
Similarly to the case of Gaza Strip, the researchers revealed
backward rank of such factor in enhancing productivity.
External circumstances group

External circumstances group includes two factors.
Table 17 shows the respondents’ opinions against both
economical and political situation in the Gaza Strip.

....................................................................................................................................................................................................................................................................................
Table 17. RII and Ranks for impact of external circumstances (group 11)
Tabla 17. IIR y Calificaciones para el impacto de las circunstancias externas (grupo 11)
External Circumstances/ Circunstancias Rank within group/ Calificación Rank among all groups/ Calificación
RII/ IIR
Externas dentro del grupo entre todos los grupos
Closure & Economical difficulties/ Cierre &

0.977 1 1
Dificultades Económicas
Political situation/ Situación Política 0.968 2 2
With a relative index of 0.977, the respondents ranked

„Closure and Economical difficulties“ factor as the first factor
affecting construction productivity and the same factor was
also ranked 1st among the overall eighty three factors. “Political
situation” factor was ranked second among both the “External
Circumstances” group and the overall factors affecting
construction productivity. In fact the economical and the
political factors are connected together considerably so it will
be difficult to deal separately with each factor. According to the
World Bank (2008), Palestinians are currently experiencing the
worst economic depression in modern history. The opprobrious
imposition of international sanctions has had a devastating
impact on an already severely comprised economy given its
extreme dependence on external sources of finance.
Summary of groups ranking

Table 18 shows a summary of ranking the eleven
productivity improvement groups. Ranking was based on
relative index values. RII of each group equal to the average of
relative indices values related to the group’s factors. The most
important groups will be discussed below.
Table 18. Ranking of all productivity improvement groups

Tabla 18. Calificación de todos los grupos de optimización de productividad
Group/ Grupo RII/ IIR Rank/ Calificación
External Circumstances/ Circunstancias Externas 0.972 1

Contractor Characteristics/ Características del
0.812 2
Contratista
Management/ Administración 0.812 2
Equipment/ Equipos 0.786 4

Labor Productivity Improvement Techniques/
Técnicas de Optimización de Productividad 0.773 5
Laboral
Engineering/ Ingeniería 0.767 6
Material 0.747 7
Labor/ Mano de Obra 0.74 8
Contracting/ Contratos 0.712 9
Regulations/ Regulaciones 0.655 10

Information Technology Applications/ Aplicación
0.649 11
de Tecnologías de la Información
ALL Groups/ TODOS los Grupos 0.757

It is shown that the “External Circumstances“ group

was ranked in the first position among the eleventh groups.
That means that the “External Circumstances“ group has the
highest effect among other groups in improving construction
productivity. All development projects have been stopped as
the United Nations development stopped all its construction
contracts for the infrastructure in the Gaza Strip. Such as
rehabilitation of street, water and sewage facilities, with an
estimated cost of 60 million US$, and the UNRWA stopped
its program for creating job opportunities at an estimated cost
of 93 million US$ from which more than 16,000 people were
supposed to benefit. These exceptional conditions reflect the
impact of unstable political and economical situation on local
construction industry. Accordingly construction productivity
decreased to the lowest level due to suspension of all
construction projects.
“Contractor Characteristics” group was ranked in

the second position among the eleventh groups. Contractor
characteristics group include many facets of contractor’s
capabilities such as contractor’s previous experience, its
financial capability, reputation, company policy and other
factors. In dead, these factors are considered as superior
factors in improving construction productivity. As mentioned
previously a successful implementation of construction projects
depend highly on the financial capability of contractors either
in delivering material, labors and machinery or submitting
required guarantees and insurances. The solvent contractor can
facilitate all these requirements which in turn help maintaining
productive as well as profitable projects. On the other hand
the experienced contractor has the required knowledge to
deal with construction projects in away which bring benefits
as well as productive implementation to the contractor. The
previous construction experience is considered a major tool
which enables any contractor to plan properly, implement
successfully and achieve optimal productivity levels in
construction projects.
“Management” group was also ranked secondly

among the eleventh groups with a relative index of 0.812.
Construction management aims to provide professional service
that applies effective economical management techniques to the
design, planning, procurement, and construction of any project
lifecycle. The Project management constitutes important parts of
construction firm, as it organizes, plans, schedules, and controls
the fieldwork and is responsible for getting the project completed
successfully as well as productively. While project implementation
is influenced by a variety of factors, in most cases, successful
project management will handle the project in the most proper
fashion. “Equipment” group was ranked in the fourth position
among the eleventh groups with a relative index of 0.786. The
selection of the appropriate type and size of construction
equipment often affects the required amount of time and effort
and thus the job-site productivity of any construction project.

....................................................................................................................................................................................................................................................................................
It is therefore important for site managers and construction

planners to be familiar with characteristics of different types
of equipments commonly used in construction. In order to
increase job-site productivity, it is beneficial to select equipment
with proper characteristics and a size most suitable for the work
conditions at a construction site. While the standard production
rate of a piece of equipment is based on «standard» or ideal
conditions, equipment productivities at job sites are influenced
by actual work conditions and a variety of inefficiencies and
work stoppages. As one example, various factor adjustments
can be used to account in an approximate fashion for actual
site conditions.
Comparison of productivity problems with other countries

Several researchers have carried out investigations
into productivity problems in different countries, all of
which have used different factors. Away from political and
economical factors, five crucial factors have been selected
and compared with results obtained by other authors; ranking
of these factors is shown in Table 19. The results have shown
that lack of material is the most crucial productivity problems
internationally, as the factor was ranked first in every country
surveyed. Considering differences between countries, it is fair to
say that both developed and developing countries have fewer
problems in field management than Gaza Strip. Meanwhile, all
experience the impact of planning factor at about the same
level. Scheduling factor was considered a significant factor in
all countries whereas respondents in both UK and Indonesia
indicated higher level of importance for this factor. The
significant role of construction equipments in both USA and
Iran was more effective in enhancing construction productivity
compared with other surveyed countries.
Table 19. Comparison of productivity problems with other countries

Tabla 19. Comparación de problemas de productividad entre países
Gaza Strip/
Factors affecting Indonesia Iran/ Irán Nigeria UK USA
Franja de Gaza
productivity/ Factores que
Rank/ Rank/ Rank/ Rank/ Rank/ Rank/
afectan la productividad
Calificación Calificación Calificación Calificación Calificación Calificación
Lack of material/ Falta de

1 1 1 1 1 1
material
Planning/ Planificación 2 4 2 5 3 3
Scheduling/ Programación 3 5 6 7 2 5
Field Management/
6 N/A 4 2 4 4
Administración en obra
Equipment/ Equipamiento 5 2 3 - 5 2
(Cited in Makulsawatudom and Emsley 2001)

(Citado por Makulsawatudom y Emsley 2001)

5. Conclusion
The main objective of this study was to study the
impact of significant factors on construction productivity in the
Gaza Strip as well as to suggest practical recommendations
that might help achieving productive implementation in the
sector of construction industry. For enhancing productivity
in local construction industry, a list of multiple productivity
improvement factors was collected from the review of literature
and formed a primary productivity evaluation questionnaire.
Eighty-three productivity improvement factors were considered
in the final questionnaire and categorized into eleven groups.
“Closure and Economical difficulties“ factor was ranked firstly

whereas „Political Situation“ factor was ranked secondly among
the overall eighty three factors. Both factors were listed under
the external circumstances group. The reason behind this fact
is attributed to the continuous closure imposed on the Gaza
Strip in addition to the unstable political situation. The results
have shown that the „Delivery on Time“ factor was ranked
thirdly whereas „Material Availability“ factor was ranked sixth
among the overall eighty three factors. Both factors were listed
under the material group. The scheduled delivery of material
is a major component in enhancing project productivity as
it allows all construction activities to be completed within
time. Management group included four potentials for
productivity improvement, namely, „Field Management“ factor
which was ranked fourth among the overall factors; „Office
Management“ factor which was ranked fifth among the eighty
three productivity improvement factors; „Planning“ factor
which was ranked seventh and finally „Scheduling“ factor
which was ranked ninth. Effective management tools such as
proper planning and scheduling, successful field management,
and suitable utilization of resources should definitely increase
construction productivity.
Among the eleven groups, “External Circumstances”

group, represented by the economical and political factors, was
ranked in the first position. Construction projects in Gaza Strip
are still suffering from continuous closure and material shortage.
On the other hand, the unstable political atmosphere affects
badly the construction industry in Gaza Strip. “Management”
group was ranked secondly among the eleventh groups.
Management activities have the highest effect in enhancing
construction productivity. Management is responsible for
getting successful implementation as well as productive work.
On the other hand, “Contractor Characteristics” group was
also ranked by respondent in the second position among the
eleventh groups. Contractor characteristics group, represented
by contractor’s capabilities, previous experience, its financial
capability, reputation, company policy and others has a
superior role in improving construction productivity.

....................................................................................................................................................................................................................................................................................
When comparing findings mentioned previously

with results obtained in different countries, it was found that
lack of material is the most crucial productivity problems
internationally, as the factor was ranked first in every country
surveyed (USA, Indonesia, Iran, Nigeria, UK and Gaza Strip)
. Both of planning and scheduling factors were considered
significant factors affecting construction productivity in those
countries whereas respondents in both UK and Indonesia
indicated higher level of importance for scheduling factor.
Respondents in both USA and Iran highlighted an increased
role of construction equipments in improving construction
productivity compared with other countries like UK, Indonesia
and Gaza Strip.
Identifying major problems affecting construction

productivity by all participants should definitely help to
facilitate proper solutions as well as determine potentials for
productivity improvement. The industry needs to collaborate
more with universities and research institutions in order to plan
an effective strategy through which construction industry could
be enhanced. Large organizations and industry leaders need
to participate in the process of building an innovation strategy.
To be successful this would include participation from clients,
owners and users. Measurements of construction productivity
need to be developed that are recognized by all participants
are essential for the long-term success of any improvement
action plan. Without such measures, the continued support
for research and innovation strategies cannot be justified. The
Palestinian authorities, namely the Ministry of Public Works
and Housing, the Engineering Syndicate, the Palestinian
Contractors Union and the other concerned authorities are
recommended to promote, preach, and encourage contractors
to develop their standards and organizational working system.
On the other hand, these authorities are required to establish
necessary rules and regulations that assist at improving local
contractors capabilities which in turn reflect higher rates of
productivity in local construction sector.
It is imperative to bring attention to the fact that

very little has been done on contractor prequalification and
other areas related to contracting. The Palestinian Contractors
Union and other construction organizations are required to
establish new mechanism through which construction firms
could be prequalified honestly based on technical as well as
financial considerations. Accordingly unqualified contractors
could be eliminated or drawn back to lower classifications,
thus help minimizing the bad effects of intensive competition
among contractors, keep only qualified construction firms in
the circle of competition and establish for a balanced local
construction market. Consequently, construction productivity
could be enhanced. Labor Ministry, clients, construction
organizations and other related authorities should promote to
highlight the significant role of safety and quality
in enhancing construction p r o d u c t i v i t y.

This could be done together with legislating effective acts

and practical procedures in order to keep safe working
conditions in construction projects. In this regard, the role
of Labor Ministry should be vital. On the other hand, Labor
Ministry and other authorities are required to take the lead
in activating the Palestinian labor law and ensuring balanced
contract agreements between labor and construction firms.
This will definitely enhance fairness feeling among construction
labor as well as increase labor satisfaction and loyalty to their
construction companies. Accordingly construction labor could
be motivated and do their best for implementing productive
job.
It is also required to increase government spending in

research development field for construction sector. Investment
in construction process issues is at present essentially non-
existent. Industry needs to take the lead in diffusing existing
and new findings to all, through a designated information
network including information on best practices, new
technologies and materials, and training opportunities to
facilitate technology transfer. At the end, the governmental
role in continuous evaluating as well as applying strategies
and action plans to enhance construction sector is essential.
Clients and construction organizations should identify, analyze
and evaluate all risks that anticipated taking place during the
construction phase. An advanced payment should be paid to
contractors equal to the cost of all material supposed to be
used in the construction process. This should be done together
with issuing a bank guarantee from the contractor side to cover
this value. This simply if done will enable the contractor to
procure the required material in advanced and consequently,
secure continuous implementation which in turn reflect higher
rates of productivity and enhanced progress. Construction
organizations are recommended to adopt professional
productivity measurement techniques such as benchmarking.
These techniques help to evaluate project performance, make
it possible for management to assess where they are in the
job and increases their ability to plan current as well as future
work.
Construction organizations are recommended to

have a monitoring role on labor agreements. Labor union
representatives should go and monitor what is said and what
is written down and agreed to. These agreements should
be valid for a period of time and must be understood by
all parties. Such agreements create a balanced relationship
between contractor and labor and enhance labor loyalty to
the construction firm thus helping reduce inherent conflicts
between labor and contractor and sustain construction labor
productivity. Construction organizations, consultants, clients
and labor union in the Gaza Strip are required to highlight
the significant role of safety in construction projects and
enforce local construction firms to follow up safety regulations.

....................................................................................................................................................................................................................................................................................
Accordingly it’s required from local contractors to include

safety rules in the daily and weekly plans, and then the number
of safety violations would certainly be reduced which in turn
decrease disruption at working site and increase productivity.
Material shortage was found a considerable problem

affecting productivity in the local construction industry. Local
contractors are advised to place material purchasing orders in
advanced, approve alternative materials and have provisional
stocks of basic materials like cement and steel; this could be
used in a case of emergency circumstances like continuous
closure. Contractors should be required to submit a material
supply schedule together with project time schedule, thus
enforce contractors to arrange construction material on time.
Local contractors are advised to use productive machine and
eliminate old or unsuitable one. It’s imperative to consider the
fact that every construction activity requires a certain type of
machines, so it will not be productive to use replacement. It is
essential for each contracting company to adopt motivational
system through which labor could be encouraged to increase
construction productivity. Indeed, local contractors have a
limited experience in such field, therefore, they are required to
check different motivational approaches in other countries and
use suitable programs. It is essential for local contracting firms
to ensure that adequate procedures and qualified personnel
are assigned every step in the construction process. This can
be done by interviews and by having qualified personnel
conducting audits to ensure things are working well. Personnel
selection methods must be based on the needs of the job.
6. Acknowledgement
The authors would like to thank DAAD in Germany
for supporting this research.
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Revista Ingeniería de Construcción RIC

Vol 28 Nº2 2013 http://www.ricuc.cl

Trends in productivity improvement in construction projects in

* Department of Civil Engineering, IUG, PALESTINE

Keywords: Construction, contractors, improvement, productivity

Palabras Clave: Construcción, contratistas, optimización, productividad

Revista Ingeniería de Construcción Vol. 28 Nº2, Agosto de 2013 www.ricuc.cl 173

Roads, infrastructure projects (sewage and water), governmental

The Palestinian Authority (PA) is highly dependent

174 Revista Ingeniería de Construcción Vol. 28 Nº2, Agosto de 2013 www.ricuc.cl

Productivity is one of the significant components

Revista Ingeniería de Construcción Vol. 28 Nº2, Agosto de 2013 www.ricuc.cl 175

Improving productivity is a management issue,

In Haskell’s view (2004), the potential for further

Several scholars have identified a range number

176 Revista Ingeniería de Construcción Vol. 28 Nº2, Agosto de 2013 www.ricuc.cl

Kazaza and Ulubeylib 2007, Thomas and Horman 2006,

Rojas and Aramvareekul (2003) presented the results

Lbbs (2005) studied the impact of construction

Revista Ingeniería de Construcción Vol. 28 Nº2, Agosto de 2013 www.ricuc.cl 177

Factors contributing to the adverse effects of change orders

178 Revista Ingeniería de Construcción Vol. 28 Nº2, Agosto de 2013 www.ricuc.cl

Correction for finite population:

Where POP is the population = 139 (POP represents

The total number distributed to contractors was

The final version of the questionnaire included

Revista Ingeniería de Construcción Vol. 28 Nº2, Agosto de 2013 www.ricuc.cl 179

The respondents were asked to rate their level

Figure 1. Type of entity for local contractors

180 Revista Ingeniería de Construcción Vol. 28 Nº2, Agosto de 2013 www.ricuc.cl

Type of participating contractors

Table 1. Type of local contractors

Building/ Edificaciones 38 54.3%

Industrial works/ Trabajos Industriales 2 2.9%

Infrastructure/ Infraestructura 17 24.3%

Water works/ Trabajos para Aguas 13 18.6%

The previous result is consistent with the type of

Respondents’ job title

Otros 5,5% Gerente de la

Puesto de trabajo de los encuestados

Figure 2. Job title of respondents

Revista Ingeniería de Construcción Vol. 28 Nº2, Agosto de 2013 www.ricuc.cl 181

Years of experience for the respondents

Figure 3. Years in business for respondents

Average annual business volume for the respondents

182 Revista Ingeniería de Construcción Vol. 28 Nº2, Agosto de 2013 www.ricuc.cl

Table 2. Average annual business for respondents

Average annual business volume ($Million) Frequency Percent

Less than $1M/ Menos de $1M 21 29.6%

1-Less than $2M/ 1-Menos de $2M 24 33.8%

$2M and above/ $2M y más 26 36.6%

Years in business for the contractors

Percent 19.70% 70.40% 9.90%

Figure 4. Years in business for the contractors

Total sales of respondents

Revista Ingeniería de Construcción Vol. 28 Nº2, Agosto de 2013 www.ricuc.cl 183

For the large companies, only 15.1% of the respondents

Table 3. Total sales of respondents

Under one millions/ Bajo un millón 8 11.0%

Under 3 millions/ Bajo 3 millones 5 6.8%

Under 6 millions/ Bajo 6 millones 10 13.7%

Under 10 millions/ Bajo 10 millones 20 27.4%

Under 20 millions/ Bajo 20 millones 19 26.0%